if refuse , then close the account.

you'll get the balance bank.

majority now all ewallet need to do eKYC.

Only for toll and parking. No benefit to use for other

This specific app also keeps money for you, why bank app need KYC but this one don't need?

probably not (i think) but certain function will be restricted such as transfer limit, etc
it's not a bank app but it's the concept of super-app (invest, finance, save, spend, etc)
won't get you rich but it's still free money
assuming 3% cash back, less 1% fee, net 2%
keep recycling that RM 1,000 will get you RM 240 per year per card or RM 215 after tax

The similarity is that both are holding your money and allow you to spend it. Which differences require KYC for bank app but not TNG?

Those apps which allow usage of credit outside (e.g. via DuitNow QR or their own QR codes) like ShopeePay, TNG, Grab, GXBank, Rize, all are implementing KYC. Because then their apps become basically banking apps, and have to follow banking requirements. Especially when they also offer other financial services like unsecured credit. Or in TNG's case, actually hold your deposit and give interest.

Lazada only allows usage of their credit within Lazada. Similar to points in whatever mobile game. In that sense it is more similar to Steam - you have a wallet which is just money you have pre-paid, can only be used on their service. Not a bank where you can deposit and spend outside their ecosystem.

Does foodpanda even have a wallet (I don't use it)? If it has a wallet, can that wallet be used to make payment outside foodpanda? Does it do loans? Not sure why you bring up random apps which are NOT like TNG/bank apps.

You mean FPX to transfer FROM your bank account to foodpanda for payment?

Like ANY other app which receives payment? Your telco app also can receive funds. Your internet service provider app can receive funds.

What they cannot do is store funds and then transfer out as payment. They do not give loans.

TNG is NOT like that. You can receive funds, you can store funds, you can obtain loans from them, they even give you interest for some of your funds. They are a digital bank with digital banking license and hence have to follow those laws.